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Such cases are known as Hit and Run Accidents. Section 161 of the Motor Vehicle Act defines a 'hit and run accident' as an accident arising out of the use of a vehicle, the identity of which cannot be ascertained in spite of reasonable efforts for the purpose. Obviously, in such accidents since the vehicle is not traced, no liability can be imposed on any insurance company and the victims have to suffer.
This Section of the Act provides for payment of compensation (Solatium) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of Rs.8,500 and in respect of grievous injury to any person, a fixed sum of Rs. 2,000.
This compensation is payable out of a 'Solatium Fund' established by the Central Government and it consists of 70% contribution of the General Insurance Corporation of India and 30% by the Central and State Governments.
